Summery of Economic Measures Issued on 13th May, 2020 to fight against COVID-19, Part-1

With the vision of Self-Reliant India Movement and vocal for our local products the Prime Minister of India Mr. Narendra Modi announced on 12^th May 2020 the Special economic and comprehensive package of Rs. 20 Lakh Crore for economic booster which is equivalent to 10% of India’s GDP. This Package has been announced with aim to cater various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

This package will be announced in a pack of series. In the first part of series today Finance Minster of India Mrs. Nirmala Sitharaman announced various schemes/ benefits and relaxations which are as under:

For MSME’s:-

• Rs 3 lakh crores Collateral free Automatic Loans for Business, including MSME’s with certain conditions.
• Rs 20,000 crore Subordinate Debt for MSME’s.
• Rs 50,000 crore equity infusion through MSME Fund of Funds.
• New definition of MSME’s:

• Global tender to be disallowed up to Rs 200 crores. This will be a step towards Self-Reliant India and support Make in India.
• E-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
• MSME receivable from Government and CPSE’s to be released in 45 days.

Income Tax/TDS:-

• Due date of all income-tax return for FY 2019-20 will be extended from
• 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and
• Tax audit from 30th September, 2020 to 31st October, 2020.
• Rate of TDS (for non-salaried specified payments made to residents) and TCS (for the specified receipts) shall be reduced by 25% of the existing rates for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
• Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.
• Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.

EPF:-

• Payment of PF (employer and employee contributions both) for those establishments having up to one hundred employees, with 90% or more of such employees earning monthly wages less than Rs.15000/-, extended by another 3 months for June, July and August 2020.
• Statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months.

OTHERS:-

• Rs 30,000 crore Special Liquidity Scheme for NBFC’s/HFC’s/MFI’s.
• Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFC’s.
• Rs. 90,000 Cr. Liquidity Injection for DISCOM’s.
• Extension of up to 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, Central Public Works Dept, etc).
• Extension of Registration and Completion Date suo-moto by 6 months of Real Estate Projects under RERA for all registered projects expiring on or after 25th March, 2020 without individual applications.